I seem to remember reading here that they had been taken over, although ive not had it from Oanda themselves
On the type of account to get if you are a beginner, the amount isnât relevant. It is all going to depend on the leverage you use. People typically lose money on Forex trading because they have over-leveraged a position and have run out of funds when the currency goes against them.
I only use a leverage of 1:5 and 1:10. So on a ÂŁ20K fund, I would only buy 1 to 2 lots, but have longer stop loss positions (typically 2 to 3 cents). That way, unless you have grossly misunderstood the market you will make profit sooner or later.
This is right - theyâve been taken over by CVC (the CEO will stay on, and hopefully it will change nothing):-
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the reason a beginner should start with a micro account is to learn and make mistake with smaller amount of money, rather than lots of money. After you are certain you can consistently make money, then you can put more at risk.
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Yes, after demo account trading, the next step is to start trading with a micro account in order to gain confidence with little risk of loss. If you keep the momentum of success then you can invest as much as you want. Confidence and discipline are the necessary requirements for success on the Forex market.
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generally demo is the first basic after finishing pre school level , but we traders donât believe the importance of demo at all and trade here at random for all time, thatâs why sometimes i prefer micro account instead of demo after finishing baby pips school.
It is not that you will have to start with micro trading accounts. But experts suggest that if a new baby start with micro trading accounts he can be more relaxed with the smallest investment. In case of standard accounts, there is a fear of losing money, i.e. a large money. Even when I was a new player, I started with micro accounts.
It is not necessary but youâll be generally advised to begin with demo trading and then move to live trading through micro accounts because of the ability to trade with smaller investment. Youâll be fresh out of demo trading and straight away jumping to standard account may overwhelm you. Plus, micro accounts are a good way of testing the broker.
I used to think of course unquestionably it would be better to start with a very limited account, full only of the money you donât mind losing, a very small amount of your wealth / capital.
Actually, I now wonder if this just massages the pain symptom of poor trading technique without teaching valuable lessons. It certainly makes it harder to focus on risk management, % capital risked, stop-losses, correlated trades, pyramiding, scaling etc. etc.
I recently read a post from guy who said heâd bought an option at $40, it was now worth $69 and he thought he had only made a tiny profit. Actually, his 70% gain was a massive and extraordinary performance, but the small $ amount made it hard for him to see the lessons learned.
If 1% of your capital risk is not even lunch money, youâre just making it harder to learn the value of a trade.
BUT -
- you MUST put your money with a secure and regulated firm
- you MUST have demo traded with the same large capital account size as youâre now going to trade with: if you canât win on demo, youâre just not ready yet.
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a lot of noobs make the mistake of demo trading with a large account size, like over 10k or more. It only makes sense to trade with an amount you plan on starting with. You should be able to manually adjust the amount when opening up a demo account. I use Oanda and TradersWay for demo trading and I had to type in $700 in order to be able to trade that amount. The standard options they normally have available to choose from is $3,000 or more.
It is not necessary to trade with the micro account but being as a new trader taking a big amount to Forex is risky. SO test your skills with the live account then invest.